Ayurveda Market Size, Share & Trends Analysis Report By Form (Herbal), By Application (Personal), By Indication (Skin/Hair), By Distribution Channel (Direct Sales), By End-use, By Region, And Segment Forecasts, 2024 - 2030

Ayurveda Market Size & Trends

The global Ayurveda market size was estimated at USD 14.4 billion in 2023 and is projected to grow at a CAGR of 27.2% from 2024 to 2030. This growth is majorly anticipated due to the rising prevalence of chronic diseases, increasing awareness of the benefits of Ayurvedic products, and high adoption & acceptance of Ayurveda. Moreover, rising demand for organic and natural personal care products, which include Ayurvedic ingredients, such as neem, turmeric, and sandalwood, is driving the industry growth. The market is being shaped by a primary trend of clinical studies demonstrating the health benefits of Ayurvedic supplements. This trend has led to a spike in scientific validation, which has increased customer trust and fueled market growth. Ayurvedic medicines and treatments are known to have lower side effects compared to allopathy medicines.

For instance, Turmeric is widely used in various supplements due to its anti-inflammatory properties, which have been validated by research. The market witnessed a surge in demand due to the increasing consumer focus on preventive healthcare and immunity-boosting products during the COVID-19 pandemic. The lockdowns and social distancing measures led to a shift in consumer behavior towards natural and organic products, including Ayurvedic supplements and medicines. Moreover, the growing awareness about the benefits of Ayurveda in managing stress and anxiety levels also contributed to the market growth during COVID-19. Governments around the world are recognizing the potential benefits of Ayurveda and are taking steps to regulate and promote its use.

For instance, in India, the Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy) has been established to promotetraditional medicine and alternative medicine systems. According to the Directorate General of Commercial Intelligence and Statistics (DGCI&S), India's exports of Ayurvedic and herbal products have increased from USD 479.6 million (3,967.4 crores INR) in FY21 to USD 606.2 million (5,014.3 crores INR) in FY23. On the other hand, the import of Ayurvedic and herbal products in India has also increased USD 71.4 million (590.7 crores INR) in FY21 to USD 91.1 million (753.8 crores INR) in FY23, with a compound annual growth rate of 13 %. As a result, India's trade surplus in Ayurvedic and herbal products increased from 408.2 million (3,376.7 crore INR in FY21 to USD 515.1 million (4,260.5 crore INR) in FY23.

Market Concentration & Characteristics

The market growth stage is high, and the pace of its growth is accelerating with the help of AI and machine learning (ML), companies are offering personalized Ayurvedic treatments based on an individual’s dosha (constitution) and health condition. For instance, in February 2024, AYUFY Ayurveda, an Indian Ayurvedic startup focusing on women's health and infertility under the parent company Medistacks Healthcare Ltd., launched its mobile app to address women's gynecological issues in India with the help of Ayurveda. In addition, the companies in this market are using innovative and attractive packaging techniques to increase the shelf life, portability, and convenience of Ayurvedic products.

The market is characterized by a moderate level of merger and acquisition (M&A) activities by the leading players driven by the growing demand for natural and organic products, consolidation in the industry, and the need to expand geographical reach. For instance, in November 2022, Mankind Pharma, an Indian pharmaceutical company, acquired a majority stake in Upakarma Ayurveda Private Limited, which manufactures, develops, and sells Ayurvedic and herbal products. This acquisition aims to expand Upakarma Ayurveda's range of products and services by utilizing Mankind Pharma's strong distribution network.

Regulations play a crucial role in shaping the global market. Governments worldwide are introducing regulations to ensure the safety, quality, and efficacy of Ayurvedic products. Good Manufacturing Practice standards (GMP) ensure that Ayurvedic products are manufactured in a controlled and hygienic environment, using high-quality raw materials and standardized processes wherein IPR regulations protect the intellectual property rights of Ayurvedic formulations and prevent unauthorized use or copying of these formulations. Similarly, the Food and Drug Administration (FDA) regulates Ayurvedic products as dietary supplements in the U.S.

The global market faces competition from various product substitutes, such as allopathic medicines, homeopathic medicines, naturopathy, traditional Chinese medicine (TCM), and other alternative systems of medicine. However, Ayurveda has unique selling points and formulations that give it an edge over its counterparts.

The global market serves a wide range of end-users, including individuals seeking natural and organic products for health and wellness, patients seeking alternative systems of medicine for chronic diseases, and healthcare providers seeking complementary therapies for their patients. The concentration of end-users varies depending on the region and product category.

Form Insights

The herbal segment dominated the market with a revenue share of more than 40% in 2023. This growth is attributed to the increasing consumer awareness about the benefits of herbal supplements, a growing interest in natural and organic products, and a rising trend of preventive healthcare. Herbal supplements comprise botanicals, herbs, or plant-based elements that assist in improving different health issues, including digestive problems, sleep disorders, and stress, which propels the demand for Ayurvedic products. According to the World Health Organization (WHO), over 80% of the population in the world from 170 countries use traditional medicine, including Ayurveda, herbal medicine, acupressure, acupuncture, yoga, and indigenous therapies.

The herbomineral segment is expected to grow with the fastest CAGR of 28.5% during the forecast period. They offer a perfect blend of natural herbs and essential minerals, making them an attractive option for health-conscious consumers. With rising awareness about the importance of maintaining a healthy lifestyle, consumers are increasingly seeking natural and herbal supplements to boost their overall well-being. This increasing awareness of the benefits of Ayurvedic products and the growing adoption and acceptance of Ayurveda are propelling the market growth.

Application Insights

The personal segment dominated the market in 2023 with the largest revenue share and is expected to grow at the fastest CAGR during the forecast period. Personalization has become a key trend in the personal care industry, with consumers looking for products that are tailored to their specific needs and preferences. Ayurvedic personal care products offer customization options based on individual doshas (body types), making them a popular choice among consumers.

For instance, in April 2020, TotalAyurvedaCare.com, an Indian Ayurveda company, introduced a unique telemedicine platform that merges modern technology with traditional Ayurvedic practices. This platform allows patients to have face-to-face virtual consultations with Ayurvedic practitioners. The holistic care and treatment provided by the platform are tailored to meet the specific needs of every individual with highly qualified and experienced doctors.

Indication Insights

The skin/hair segment dominated the market in 2023 with the largest revenue share. The preference for herbal remedies and traditional healing practices has fueled the demand for Ayurvedic skincare and haircare products. Consumers are becoming more conscious of the ingredients in their skincare and haircare products, leading to a shift towards natural and Ayurvedic formulations. The endorsement of Ayurvedic products by celebrities and influencers has also contributed to the segment’s growth by increasing visibility and credibility. The infectious disease segment is expected to grow at the fastest CAGR during the forecast period.

The rising incidence of infectious diseases, such as HIV, H1N1, and tuberculosis, has led to the development of new Ayurvedic products and treatments for infectious diseases, which is expected to drive segment growth. For instance, in July 2023, the Chinese Herbal Medicine Drug Development (CDD) achieved significant progress in developing an innovative Chinese botanical drug development to treat chronic constipation. Following the approval of the Investigational New Drug Application by the U.S. Food and Drug Administration, CDD has been granted permission to conduct a clinical trial on the new drug. However, the growing awareness of Ayurvedic medicine and its benefits among consumers has led to an increased demand for Ayurvedic products.

Distribution Channel Insights

The direct sales segment dominated the market, with the largest revenue share in 2023. The increased awareness about the benefits of Ayurvedic products has led to a surge in demand, effectively catered by companies using direct sales channels. Direct sales channels enable companies to offer personalized recommendations and customized products based on individual consumer needs. This level of customization enhances the overall consumer experience and drives higher sales through direct channels. The e-sales segment is expected to grow with the fastest CAGR during the forecast period.

The integration of technology in the Ayurveda sector has made it easier for consumers to access information, products, and services, contributing to the growth of the e-sales segment in the global market. E-commerce platforms have played a significant role in expanding the reach of Ayurvedic products globally. For instance, in February 2022, Amazon India announced a dedicated storefront on its marketplace solely focused on Ayurveda products. This storefront aims to increase the visibility of Ayurveda products which includes a wide range of immunity boosters, juices, oils, skin-care supplements, and other items from small businesses and D2C brands.

End-use Insights

The clinics segment dominated the market with the largest revenue share in 2023. The rising incidence of chronic diseases, such as diabetes, arthritis, and cancer, and the adoption of Ayurveda for treating them has led to an increased demand for Ayurvedic medicines and therapies offered by Ayurvedic clinics. The easy availability of trained Ayurvedic practitioners has also contributed to the segment growth. Several institutions and universities offer training and education in Ayurveda, which has led to an increase in the number of qualified practitioners and clinics. For instance, in December 2022, the All India Institute of Ayurveda (AIIA) entered into an MoU with the University of Medical Sciences in Cuba and extended its agreement with REAA (Rosenberg European Academy of Ayurveda) in Germany for another five years.

The AIIA has established partnerships with 15 international and 35 national organizations to facilitate collaborative programs. The primary aim of these partnerships is to promote evidence-based studies, advanced scientific research, exchange programs, clinical trials, and better patient care. The academia & research segment is expected to grow at the fastest CAGR during the forecast period. There has been a notable surge in R&D activities in the field of Ayurveda due to its increasing popularity. Numerous academic institutions are now investing in Ayurvedic research to uncover its potential benefits and therapeutic applications.

This growing interest in Ayurveda is expected to drive the growth of the academia segment. For instance, in March 2022, an agreement was signed by the Government of India and the World Health Organization (WHO) to launch the WHO Global Centre for Traditional Medicine. This center aims to use technology and modern science to mobilize the potential of traditional medicine from around the world to improve people’s health. The Government of India has invested USD 250 million to support the establishment of this global knowledge center for traditional medicine.

Regional Insights

North America is one of the major contributors to the global Ayurveda market. As consumers in North America become increasingly wary of synthetic medicines and chemicals, there is a growing inclination towards natural and organic products. Ayurvedic remedies, harnessing the power of herbs, minerals, and natural ingredients, align perfectly with this preference for holistic and safer alternatives, driving their popularity and adoption in the market. According to the U.S. Department of Agriculture (USDA) survey results, significant shifts in organic agriculture over the decade from 2011 to 2021: Certified organic cropland expanded by 79% to reach 3.6 million acres, while pastureland and rangeland designated for organic use decreased by 22% to 1.3 million acres. Moreover, the number of certified organic operations surged by over 90%, totaling 17,445 farms by 2021. Moreover, organic retail sales in the U.S. demonstrated a consistent annual growth rate of 8%, reaching over USD 52 billion in 2021, equivalent to approximately 5.5% of total retail food sales. In addition, U.S. farms and ranches generated nearly USD 11 billion in revenue from organic product sales in the same year, reflecting the significant economic impact and increasing demand for organic agriculture in the country.

U.S. Ayurveda Market Trends

The U.S. Ayurveda market is expected to experience significant growth driven by increasing awareness and acceptance of alternative medicines and therapies among the population. Major players in the U.S. market include Himalaya Herbal Healthcare, Maharishi Ayurveda Products International, Banyan Botanicals, Planet Ayurveda, and Organic India. These companies offer a wide range of Ayurvedic products, such as dietary supplements, herbal extracts, essential oils, skincare products, and beauty products.

Europe Ayurveda Market Trends

The Ayurveda market in Europe dominated the global industry and accounted for a share of over 30% in 2023. This high share is attributed to the increasing interest in natural and holistic approaches to healthcare and the rising popularity of yoga and meditation in European countries. Many European countries have favorable regulations for producing and selling Ayurvedic products. For example, in Germany, Ayurvedic medicines are considered traditional herbal medicinal products, making it easier for them to be registered and sold in the market. Europe is home to several major and new players in the industry, such as Maharishi Ayurveda, Himalaya Herbal Healthcare, and Dabur. These companies have a significant presence in the European market and contribute to its growth. For instance, in September 2022, an India-based global digital platform for Ayurveda products, ‘The Ayurveda Experience’, announced entry into the European market with a range of health supplements, personal care products for hair, skin, body care, and food & beverages, and even educational courses.

The Germany Ayurveda market growth is driven by the increasing popularity of Ayurveda, which has led to a rise in the number of Ayurveda centers and practitioners in Germany, providing more access to Ayurvedic treatments and products. The German government has been encouraging the use of complementary and alternative medicine (CAM), which includes Ayurveda, by funding research and offering insurance coverage for certain CAM treatments.

The Ayurveda market in the UK is expected to grow over the forecast period due to the increasing demand for personalized Ayurvedic treatments. Consumers are seeking personalized solutions that cater to their specific dosha (constitution) and health needs, leading to a rise in the number of Ayurvedic clinics and practitioners offering personalized services. As the demand for Ayurveda is increasing in the country, major players are expanding their presence in the domestic market. For instance, in June 2023, Kama Ayurveda, an Indian Ayurveda products company, expanded its presence in the UK with the launch of its D2C website.

Asia Pacific Ayurveda Market Trends

The Asia Pacific Ayurveda market is anticipated to witness significant growth owing to the increasing awareness of the benefits of Ayurveda, rising demand for natural & organic products, and growing adoption of Ayurvedic practices in daily routines. In countries like India, China, and Thailand, Ayurveda is deeply rooted in traditional culture and practices. The ancient healing system has been an integral part of these countries’ healthcare systems for centuries. In recent years, there has been a resurgence in the popularity of Ayurveda, with more people turning to natural and holistic approaches to healthcare. For instance, in February 2021, the Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopath) India signed 25 MoUs to promote and recognize AYUSH in the international practice of medicines. These MoUs include countries, such as Bangladesh, Germany, Iran, Colombia, Japan, China, Brazil, and Zimbabwe.

The Ayurveda market in India is expected to dominate the regional market of Asia Pacific as Ayurveda originated in India. The Indian government has been promoting Ayurveda through various initiatives, such as setting up Ayurvedic hospitals and clinics, establishing research centers, and providing training programs for Ayurvedic practitioners. The government’s efforts to promote Ayurveda have contributed to the industry’s growth in India. Moreover, the export of Ayurvedic products from India is fueling the growth of the domestic market. For instance, in August 2023, India exported Ayush and Herbal products worth USD 1.2 billion from 2021-2023. In 2021-2022, these products were worth 612.1 million dollars, while in 2022-2023, they were worth 628.25 million dollars.

The Thailand Ayurveda market is another significant market in Asia Pacific. The Thai government has been promoting traditional Thai medicine (TTM), which includes practices similar to Ayurveda. With the growing popularity of TTM, there has been an increasing interest in Ayurvedic practices and products. For instance, in February 2024, the Traditional and Alternative Medicine Department of Thailand signed a MoU with the National Institute of Ayurveda of India for academic collaboration in Ayurveda.

Key Ayurveda Company Insights

Some of the key players operating in the market include Kerala Ayurveda Ltd., Patanjali Ayurved Limited, Dabur Ltd., and Natreon Inc.

• Patanjali Ayurved Limited is an Indian consumer goods company that specializes in producing, marketing, and exporting Ayurvedic products. It offers a wide range of products including health supplements, food & beverages, and more with a focus on natural and organic ingredients and aims to promote the benefits of Ayurveda to consumers

• Natreon Inc. is a U.S.-based natural ingredients company specializing in Ayurveda products. They produce research-backed, patented ingredients for use in dietary supplements, functional foods, and beverages. The company has a strong presence in India, Europe, and Asia

Recent Developments

• In September 2023, Emami Ltd., an Indian personal care and healthcare company, acquired a 26% share in Axiom Ayurveda Pvt. Ltd. As part of this acquisition, Emami Ltd. also announced its entry into the juice market with the brand AloFrut, which Axiom Ayurveda markets

• In April 2022, Kerry, an Ireland-based nutrition food company, acquired Ayurvedic extract company Natreon to expand its ProActive Health portfolio. This acquisition is focused on benefiting from a large R&D network of Natreon's ingredients

Ayurveda Market Report Scope

Global Ayurveda Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global Ayurveda market report based on form, application, indications, distribution channel, end-use, and region:

• Form Outlook (Revenue, USD Million, 2018 - 2030)

  • Herbal

  • Mineral

  • Herbomineral

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Medical/Therapy

  • Personal

• Indications Outlook (Revenue, USD Million, 2018 - 2030)

  • GI Tract

  • Infectious Diseases

  • Skin/Hair

  • Respiratory System

  • Nervous System

  • Cardiovascular System

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Direct Sales

  • E-sales

  • Distance Correspondence

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals

  • Clinics

  • Academia & Research

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Norway

    • Sweden

    • Denmark

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa (MEA)

    • South Africa

    • South Arabia

    • UAE

    • Kuwait